Xanadu Mines Ltd. [XAM-TSX, ASX; XANAF-OTC] reported results of diamond drill hole KHDDH563, located at the Stockwork Hill deposit on the 100%-owned Kharmagtai porphyry copper and gold project in the South Gobi region of Mongolia.
Drill hole KHDDH563 intersected a broad zone of high-grade gold-rich chalcopyrite and bornite mineralization south of the Stockwork Hill resource, expanding the high-grade bornite zone beyond the defined resources. Hole KHDDH563 intersected 181.4 metres at 0.68% copper and 1.78 g/t gold (1.59% copper equivalent (CuEq)) from 648.6 metres, including 92 metres at 1.06% copper and 3.23 g/t gold (2.71% CuEq) from 686 metres.
KHDDH563 expands high-grade mineralization 70 metres south and up-dip of previously reported intercept in KHDDH559B.
KHDDH564 identified a new target to the south with similar structural characteristics to the high-grade zones at Stockwork Hill. Deeper step back hole KHDDH564, still in progress, intercepting visual chalcopyrite mineralization in target zone 400 metres along down-dip and along strike from KHDDH563.
Xanadu’s CEO, Dr. Andrew Stewart, said: “KHDDH563 is the first follow-up hole to our high-grade intercept at KHDH559B. We are pleased to report this delivered our expectation of a clear extension of high-grade gold-rich mineralization along strike and updip, outside the current resource model. This result further demonstrates the growth potential through extension of Stockwork Hill, and our team is designing follow-up drilling to test this exciting new zone.”
The purpose of drilling KHDDH563 was to test extensions of Stockwork Hill at depth to inform the second phase of drilling focused on higher-grade targets. KHDDH563 was drilled from south of Stockwork Hill toward the north, designed as a scissor hole to KHDDH559B. KHDDH563 entered mineralization at 648.6 m, expanding the intercept in KHDDH559B 70 metres up-dip and to the south.
KHDDH563 intersected 181.4 metres at 0.68% copper and 1.78 g/t gold (1.5% CuEq) from 648.6 metres, including 169 metres at 0.72% copper and 1.91 g/t gold (1.7% CuEq) from 651 metres, including 105.6 metres at 0.99% copper and 2.89 g/t gold (2.46% CuEq) from 680 metres, including 92 metres at 1.06% copper and 3.23 g/t gold (2.7% CuEq) from 686 metres.
It is noteworthy that this maintains the gold tenor of the deeper, high-grade bornite mineralization seen in KHDDH559B (previously announced), with between two and four g/t gold for each per cent in copper.